Tennessee collects $1.1B in March sales tax, beats budget on collections
(The Center Square) – Tennessee collected nearly $1.7 billion in taxes and fees in March, which was $17.6 million higher than estimated and $55.1 million higher than March 2023.
That was in large part due to nearly $1.1 billion in sales and use tax, which was nearly $50 million above estimates and $65 million more than March 2023.
“March sales tax revenues, reflecting February consumer activity, recorded solid growth for the month,” Tennessee Department of Finance and Administration Commissioner Jim Bryson said. “Most of the month’s tax growth came from retail activity, fuel consumption, and motor vehicle registration which boosted total tax collections and represented a slight rebound from last month’s depressed tax receipts. We will continue to monitor economic activity and revenue trends to ensure fiscal stability.”
The state is still $420 million behind budgeted estimates for the first eight months of the year.
Tennessee came $60 million short of its budget in February after being $86 million short in January.
Tennessee’s State Funding Board adjusted the numbers based on collections falling consistently short of the budgeted totals this fiscal year. The estimates being used for next year’s budget are adjusted down $718.8 million from original estimates to flat year-over-year and estimate next year’s collections to be a 0.5% increase from this year.
